Opportunities abound, but tread carefully.

Posted On Monday, 27 January 2003 10:01 Published by
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THERE are a number of property development opportunities in the buoyant Western Cape industrial sector but potential investors...
THERE are a number of property development opportunities in the buoyant Western Cape industrial sector but potential investors must ensure they have investigated the project thoroughly before committing huge resources, advises Broll Property Group director William Wakefield.

“There is money to be made,” says Wakefield. “However, you must do your homework as the potential pitfalls are numerous and can sink an otherwise promising venture.”

Broll, established in Cape Town 28 years ago, offers a variety of specialised services to assist investors through the myriad of issues that need to be addressed before embarking on a speculative development.

“The Constantiaberg Business Park in Diep River is a classic example of a well-thought out and implemented project,” explains Wakefield. “Our market research identified the type of development that would work in the area. The creation of a desirable product together with a comprehensive marketing campaign combined to ensure that 85% of the units were sold before construction began.”

“The project was successful for the developer, the purchasers were happy with the end product and prices received from subsequent re-sales have shown a healthy return for those who showed early faith in the development,” says Wakefield. “Clearly a win-win situation for all.”

According to Wakefield, Broll employs a team-based approach to all projects that it is involved in.

As the largest independent property group in South Africa Broll has a variety of in-house professionals who combine their skills to plan, design and market any new development.

The multi-disciplinary approach has been put to good use since first implemented with Pinelands Business Park, a development that pioneered the multi-use concept.

The multi-use business park is now a permanent element of the local property sector. Increasingly, these parks are incorporating a retail element into the mix creating additional traffic and exposure for the other business enterprises within the complex.

“The Cape industrial property market is in good shape. Wesgro sources have confirmed that tourism inflow is up – a 19% increase in foreign arrivals – and there has been a significant increase in exports substantiated by a dramatic rise in harbour traffic.”

“There has been a resistance by developers over the past four years to embark on new projects. But the positive economic outlook, a shortage of vacant industrial space coupled with indications that interest rates may be on the decline should spur on those with a keen eye for opportunities,” concludes Wakefield.

Broll, with offices in all major centres in the region, is a multi-disciplinary property services group with expertise in property management, broking and consulting to the retail, industrial and office markets.
Publisher: Cape Business News
Source: Cape Business News

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